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TMI Blog2020 (10) TMI 817X X X X Extracts X X X X X X X X Extracts X X X X ..... CEMENT PRIVATE LTD., M/S. TERU MURUGAN BLUE METAL VERSUS THE STATE OF TAMIL NADU, THE PRINCIPAL COMMISSIONER COMMISSIONER OF COMMERCIAL TAXES, THE ASSISTANT COMMISSIONER (ST) , THE JOINT COMMISSIONER (ST) TERRITORIAL, THE DEPUTY COMMISSIONER (ST) [ 2019 (2) TMI 1850 - MADRAS HIGH COURT] where it was held that benefit is allowed. Petition allowed. - W.P. No.14506 of 2020 And WMP. Nos.17994 & 17995 of 2020 - - - Dated:- 9-10-2020 - Honourable Dr. Justice Anita Sumanth For the Petitioner : Mr.P.Rajkumar For the Respondents : Mrs.G.Dhanamadhri, Government Advocate COMMON ORDER Heard Mr. P.Rajkumar, learned counsel for the petitioner and Mrs. G.Dhanamadhri, learned Government Advocate for the respondents. 2. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue held categorically that the benefit of the concessional rate is available to dealers who purchase High Speed Diesel from neighbouring States by way of inter-state sales. Reference is made to the decisions of other Courts that have considered an identical issue, holding the same in favour of the assessee. In fact, the decision of the Punjab and Haryana High Court has been carried to the Supreme Court in special leave and has been confirmed in State Of Haryana Others Vs. Caparo Power Ltd. Others in Special Leave Petition (Civil No. 20572 of 2018). The issue has also been considered in Hindustan Zinc Limited Several Others Vs. The State of Rajasthan others (S.B.Civil Writ Petition No.5506/2018 dated 18.05.2018) and Shree Raipur C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted Miscellaneous petitions are closed.' 3. The State has, after the date of the above order, filed a Writ Appeal in W.A.No.3403 of 2019 challenging the decision in the case of Ramco Cements (Supra) that has been considered and dismissed by a Division Bench of this Court on 09.03.2020 in the following terms: .......... 13. It is true that the liability to pay tax arises under the provisions of the CST Act only upon seller who effects the taxable sale in the course of inter-State Trade or Commerce and only such Dealers can initially obtain the registration under Section 7(1) of the Act, but, the liability to pay tax on purchase of goods is an independent liability of Purchasing Dealer also to pay tax. Section 7(1) only cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e GST Act, 2017, can obtain registration under CST Act. In the present case, the Assessee, a Cement Company, continues to be liable to pay tax under local TNVAT Act, 2006 if it sells or purchases any of these six goods also. The TNVAT Act also has not been completely repealed but now applies only to these six commodities after 1.7.2017, as per Section 174 of the TNGST Act, 2017. 14. Therefore, on a conjoint reading of both sub-sections (1) and (2) of Section 7 of the CST Act, it is clear that the Respondents/Assessees and their likes can continue to have registration under the provisions of the CST Act and the contention raised on behalf of the Revenue that they have lost their entitlement to be so registered is misconceived and liable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aws. ................... 39. Therefore, if a Dealer has a right to sell as well the restricted six items under CST Act, one fails to understand as to how their right to purchase those goods at present time under the existing Registration Certificates can be taken away merely because they are not selling those goods. If sale of the goods was the only criteria of registration under the CST Act, the consequent amendments would not have allowed concessional rate of tax for purchase of those six commodities for user in activities like Mining or Telecommunication Networks, where no such resale or use in manufacturing is involved. Therefore, such a right is equally available to other industries like Cement Industries and the same cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X
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